Security Token Manager tool (sto) is designed to work with other security tokens as well, as most ERC-20 based security tokens follow very similar structure.

We believe it is still very early for standardisation efforts of security token protocols or blockchains. We also believe that with out vast experience with smart contracts, issuances and securities regulation allows us to make the best design decisions in security token programming.

Securities have an issuer and there exists an implicit trust between the investors and the issuer

Securities often need to have real world identities associated with the ownership - a shareholder registry

Securities pay dividends or interest

By their nature, security tokens needs less hardcode decentralisation, as there always exist corresponding assets in the real world. Or opposite, losing of private keys cannot result losing the ownership of your assets.

TokenMarket security token can run both on public and private blockchains. It is immune to negative effects typically assumed with cryptocurrencies, like hacks and lost private keys. The issuer maintains the master shareholder registry access which ultimately allows to fix human errors shareholders cause for themselves.

The company board nonimates a technical advisor who will execute board decisions like paying dividends or issuing new shares. Other technical advisor activities include managing shareholders registry, recovering shares from lost private keys and fixing human errors in invalid transfers.

TokenMarket security token smart contract has role based mechanism to delegate authority or partial authority to different set of keys. The technical advisor manages these keys. For the security reasons, the technical advisor is using a multisignature wallet where multiple people need to confirm critical activities that affect the shareholder balances.

Unlike decentralised cryptocurrencies, issuer controlled financial instruments allow more relaxed private key management. Because real world identifies are known and the issuer can replace damaged tokenised shares, it is possible to establish a process where a bad key management errors are recovered. This is not totally different for replacing a lost credit cards.

In the case a shareholder reports that they have lost access to their private key, they can go through a recovery process where the lost shares are invalidated and the corresponding amount of new shares are issued to the shareholder.

The shareholder might become a victim of fraud and have their shares stolen. This is not different of mismanaging one's online bank account or credit cards and have an unauthorised transfers there.

The shareholder does not properly manage their private keys and unauthorised party gains access

The shareholder organisation is a victim of insider traud

If the unauthorised party manages to liquidate the shares, how cases of rights on stolen title are resolved depend on a jurisdiction. The issuer and its technical advisor can always follow the court decisions if unsure. For more insights read this Twitter discussion.

Announcements is a mechanism built into the security token to allow the issuer to inform market participants about the events

Attaching metadata to tokens, like company legal information and International Securities Identification Number (ISIN)

Inform traders about upcoming declaration dates for dividends

The security tokens can be self describing on a blockchain. In the future, there is less need to maintain a registry of different securities, as you can get the same information direcly from a blockchain in the form of issuer announcements.